Government of
Meghalaya

Budget Speech

2003 - 2004

Of

Dr. Donkupar Roy

Finance Minister,
Meghalaya

28th
March, 2003

Mr. Speaker, Sir,

I rise to present the first budget of MDA (Meghalaya
Democratic Alliance) Government, which took charge to provide good
governance in the State. I congratulate all the elected members in the
house who have been entrusted and and reposed with this august task to
bring in a positive change in the State.

The Change, I am hinting at, is not only
of a political kind, but is to position the undercurrent of
socio-economics and development thinking. Also, the Planning process
requires fresh orientation and understanding, with pragmatic approach to
problem faced in the State.

The planning Commission of India is yet to
finalise the resources and size of the Annual Plan 2003-2004. Thus, the
Plan Budget provision for the year 2003-2004 for the State are purely
tentative.

The Tenth Plan as approved by the National
Development Council (NDC) in December 2002 has set an ambitious growth
target of 8 percent of national economy which remains our overall
national resolve against the backdrop of demonstrated growth potential
of about 6.5 percent. The Tenth Five Year Plan Document also identifies
specific and monitoring targets, and key indicators of human
development, some of which are as follows:

Reduction of poverty ratio by 5 percentage points by 2007 and by
15 percentage points by 2012 ;

To provide gainful and high-quality employment, in addition to the
labour force over the Tenth Plan period ;

All children in schools by 2003; all children to
complete years of schooling by 2007;

Reduction in gender gaps in literacy and wage by
at least 50 percent by 2007;

Reduction in the decadal rate of population
growth between 2001 and 2011 to 16.2 percent ;

Increase in Literacy rates to 75 percent within
the Plan period;

Reduction of Infant Mortality Rate (IMR) to 45 per 1000 live
births by 2007 and to 28 by 2012;

All villages to have sustained access to drinking water within the
Plan period;

Cleaning of all major polluted rivers by 2007 and other notified
stretches by 2012.

The Prime Minister's vision to double the per capita income within
the next ten years and

A target of creating 100 million employment opportunities over the
next years.

Tenth Plan seeks to give shape to above vision
keeping in mind the constraints and potentialities, However, it
emphasise, "since there are significant lags in the process of
creation of capacities and their being brought into production, the
Tenth Plan will have to consciously take into account the pipeline
investments that would be necessary to accelerate the growth during the
Eleventh Plan period. This fact increases the investment requirement and
also lends a degree of urgency in taking the appropriate policy
steps".

It is therefore necessary to make a realistic
assessment and estimate of our growth potential by determining ways and
means to achieve the growth and other monitorable targets set during the
Tenth and Eleventh plan.

Some key issues in this connection are:

Provision for maintenance of existing capacities
which suffer both on account of lower devolution by Central Finance
Commission and a limited availability of plan resources;

The presence of large number of schemes in a
limited plan budget leading to a thin spread of resources and
calling for actions to weed out low priority and irrelevant
schemes, and also to transfer a few existing responsibilities to the
private sector; and

unproductive costs on administration and establishment.

We, therefore propose to address these
issues in a manner bereft of populism.

Sir, the tenth plan document acknowledges
and underlines the following generic concerns :

Misrepresentation of actually non-plan schemes as continuing
schemes and thereby causing aberration in assessments of revenue gap
under non-plan.

The above resulting in tight budget for the
continuing (actually non plan) schemes and bringing new genuinely
required schemes under direct conflict in the matters resource
allocations.

Consequential thin spread of resources,
non-starter new schemes suffering owing to limited resources and
leading to escalations and revisions, besides the delay.

Unrealistic Plan size and attaching a sense of
achievement in higher unrealistic plan by either depleting the cash
base or by higher borrowings to actualise it, making the finances
vulnerable and unsustainable on almost all indicators.

With respect to the above features, the
planning commission has grouped the States as follows: high-income
States, middle-income States, low-income States, and special category
States in which we fall. However, it is heartening to mention that
during the ninth Plan, the share of plan expenditure in GSPD recorded
highest for special category States. This underscores various Central
Government and State Government investments on economic growth.

This underlines the necessity of our making concerted
efforts for our absorptive capacity. We will therefore make all out
efforts to formulate larger number of proposals for Central funding
including funding under Non Lapsable Pool of Central Resources (NLPCR)
in order to improve our share of such resources.

The National Economic Scenario indicates that the
Gross Domestic Product (GDP) at factor cost at constant (1993-94)
prices grew at 5.6 to 2001-2002. With trends of initial sluggishness,
the economic picked strongly against expectations. The overall Gross
Domestic Product (GDP) growth in the current year as per advanced
estimates is likely to be only 4.4 percent. Between 2001-02 and 2002-03,
the agriculture and allied GDP did not fare well and declined by 3.1
percent, due to failed monsoon. This clouded the performances of
Industry and Services, which grew from 3.3 percent to 6.1 percent and
from 6.8 percent to 7.1 percent respectively. This late recovery
accompanied by the stability factor of low inflation, orderly currency
market conditions and comfortable reserves is considered significant
given various downside risks prevailing in the national and
international economy. The outlook of recovery in global economy is
subdued due to unsettle geopolitical factors, among others. The
transition to a market based pricing regime for petroleum products
was also devoid of disruption with fuel group inflation notching by 5
percent during the year. Capital Market continued to be subdued and
cautious. It is worrisome that the Public finances both at the centre
and the States deteriorated further during 2001-2002. Primary deficit of
the Central Government reached a level of 1.4 percent of GDP in
2001-2002.The lack of fiscal consolidation at the level of State is also
revealed by a similar and greater deterioration. The consolidated fiscal
deficit of the Centre and the States was 10 percent of GDP for
2001-2002.

State Economy:

The Advance estimates of the State Domestic Product (SDP)
for the year 2001-2002 has been revised as Quick Estimate and also the
advanced estimates of 2002-2003 has been released. The Gross State
Domestic Product (GSDP) for 2002-03 is estimated at
Rs.2,642 crores against Rs.2,513 crores for 2001-02 registering a growth
of 5.14 % as against 4.4 % of the all India at constant prices
(1993-94). At current prices, the GSDP is estimated at Rs.4,342 crores
while that of 2001-02 at Rs.3,978 crores showing a percent variance over
the previous year at 9.16 percent against All India Advance estimates of
6.8%. The per capita income of GSDP at factor cost in real terms is
estimated at Rs.10,991 for the year 2002-03 against Rs.10,731 recorded
during 2001-02 showing growth in per capita income at only 2.42 %.
However, at current prices per capita income (Advance Estimates) is
arrived at Rs18,065 in 2002-03 while during 2001-02 it was recorded at
Rs.16,987 showing an annual rise of 6.35 %. In the State the tertiary
sector continues to dominate the State economy contributing 54.91% and
55.28% in 2001-02 and 2002-03 respectively at current prices, whereas
the same at constant prices reflect 52.82% and 53.39% contribution for
the corresponding years. The secondary sector is consistently performing
by contributing 14.31% during 2001-03 period, whereas it was 14.44% at
current prices. The contribution of the Primary sector is slightly
decreasing from 30.78% during 2001-02 to 30.28% in 2002-03. At constant
prices, the secondary sector is contributing 14.78% in 2001-02 and
14.91% in 2001-02 and 30.71% in 2002-03. The Net State Domestic Product
(NSDP) at constant prices for the year 2002-03 is estimated at Rs.2,338
crores against Rs.2,228 crores during 2001-02 registering a growth of
about 5%. The corresponding variance at current prices over previous
year is 8.84%.

Sir, our growth rates in State Domestic product
during 8th plan have been 3.8 percent, and in the 9th plan have been 6.2
percent per annum and for the 10th plan it has been targeted at 6.3
percent per annum. Sector wise growth target in terms of annual average
percent for the 10th plan have been set at 4% for Agriculture, 6.87% for
the Industry and 7.05 for the Services. The poverty projection for
2006-07 for our State is 31.14%, which has a projection of 37.89% poor
in rural and 4.48% for urban areas. However, I must mention that this is
a gross figure for the entire North East, and requires differentiation
by survey and study.

The 10th plan document has indicated a sustainable fiscal deficit for
our State as 3.25 of GSDP.

Sir, based on the above I feel our economy needs to
grow at rate higher than 11% and considerable public and private
investment must flow into the economy. We must endeavour to achieve
targets set in the State.

Fiscal highlights :

Meghalaya with its limited resource base depend
largely on the Central devolution for its Non plan and Plan
requirement. Prior to 1989-90, the Planning Commission used to
provide Central Assistance to bridge the Non plan Revenue Gap of the
State. But with effect from 1990-91, the above system has changed
and the State is left to fend and the negative BCR (Balance from
Current Revenue i.e. Revenue Receipts (Non plan) minus Non plan
Revenue Expenditure) taken into account while fixing the Annual Plan
size of the State. Thus if there is negative BCR to that extent fund
for planned activity is less.

The unfavourable recommendation of the Succeeding
Finance Commission, which over assessed the State's Receipts and
under assessed its Expenditure has adversely affected the finances
of the State.

The burden on the State's exchequer on account of
3rd Pay Revision has also erode the meagre resource base of the
State. There has been 13-15% increase in the salaries / wages during
2001-02, due to regularization of large Scale Adhoc / Casual
appointments under PWD and PHE in compliance to Court's order.

The State's share of Central Taxes recommended by the Tenth
Finance Commission was Rs.1534.58 Crore but the amount actual
released by the Ministry of Finance was Rs.1306.45 Crore only.

The Non plan Revenue Gap projected to the Eleventh Finance
Commission was Rs.6011.60 Crore whereas the amount awarded by the
Eleventh Finance Commission is Rs.1572.38 Crore only. It is yet to
be seen how much we actually receive.

The collection of State's Own Receipts under Tax and Non Tax
Revenue constitutes only about 18 % to 20 % of Total Revenue
Receipts (Non plan and Plan). Major Revenue Receipts comes from the
Centre in the form of grants and loans, which is 80%- 82%. The trend
in tax collection is only marginal increase and the collection
requires giving thrust.

The fiscal deficit of the State increased to Rs.249.00 crores in
200-2001 from Rs.23.00crores in 1996-97. This deficit was largely by
public debt thus increasing the debt liability by 138% from
Rs.585.00 in 1996-97 to Rs.1394.64 crores in 200-2001. The returns
on high cost borrowings for investments made in companies and
corporations are abysmally low to the extent of less than 0.005 to
0.5 % as against loans for investment at cost of 8%-13 % range.

The net effect on transaction in the consolidated fund,
contingency fund and public account during 2001-02 was a decrease in
cash balance from Rs.149.00 crores at the beginning of the year to
Rs.43.00 crores at the end of the year.

Revenue expenditure increased from 75.54% in 200-2001 to 85.08%
in 2001-2002 and the State was revenue deficit to the tune of
Rs.34.00 crores.

The fiscal deficit during the year increased manifold (75%) over
the last 5 years indicating fiscal deterioration of the State.

The State Government had no surpluses from current revenue in the
last five years and the State had to depend on borrowings to achieve
the approved higher plan size. Such borrowings were invested in
projects or programmes or Corporations or Companies, which did not
give adequate return, making the financial condition unsustainable.

During the five years period the liabilities of the State
Government had grown by 117%.

Sir, from the reports it is clear that the State Govt. had no surplus
from current revenues in the last five years and the negative
balance on BCR (Balance from Current Revenue) has increased from year to
year and the gap continue to be met by borrowings.

This, if revenue expenditure is not controlled, capital formation
will further suffer and borrowings will increased leading to increased
debt burden. The ratio of Debt to GSDP has increased over the years
indicating reduction in the ability of the Govt. to meet debt
obligations. This has adverse implications for sustainability.

Realising the generic concerns in the Country, the Eleventh Finance
commission suggested for creation of State Fiscal Reforms Facility
scheme for each State and also suggested an incentive fund, which
the Govt. of India has implemented. The Mid-term fiscal reform is
our committed and somewhat practiced path for some time in the past. The
efforts need to be stressed more emphatically. The State has negotiated
a set of Mid term Fiscal reform with the Central Government and has
obtained release of an amount of Rs.103 crores as an incentive.
Achieving the parameters negotiated will lead to our obtaining a further
amount of Rs.153 crore as incentive over the next 3 years.

These reforms require us to achieve the under mentioned parameters
within 2004-2005.

Gross fiscal deficit of the States as an aggregate to fall below
3.5% of the GSDP.

Zero revenue deficit and progressive revenue surplus.

Interest payment as percentage of revenue receipt of the State
sector as a whole not to exceed 20%, and annual increase of interest
payments in absolute term to be limited to 10% per year.

Increase in wages and salary should not exceed 5% or the consumer
price index whichever is higher.

Explicit and implicit subsidies to be rationalized, better
targeted and scaled down gradually.

These benchmarks reflect our commitment for which
some Key strategies, are :

Monitoring and enhancing the revenue
productivity of taxes by bringing about systematic change in the
base, rate structure administration and vigorous enforcement
mechanism. Simplification of sales tax system by introduction of
Value Added Tax ( VAT ) as part of national fiscal reforms, to
rationalise consumption tax system and to improve revenue
efficiency.

Enhancing the productivity and efficiency of
non-tax revenues, fees enhancement and collection, rationalisation
and user charges towards community participation in ownership and
maintenance of assets for assuring reliable and quality services.

Reforms of Public Sector enterprises by
disinvestment winding up or restructure to reduce budgetary support.

Focus on Power sector reforms by setting up State
Tariff Regulatory Commission, taking feasible actions towards
unbundling, setting up a network of integrated profits centres,
recovery of dues, reducing transmission losses, to reduce the
difference between the average cost of power per Kwh (accrual basis)
and average revenue per Kwh in the medium term. Sir, the State
government under the power sector reforms have securities some dues
to the State Electricity Board. This implies more productive,
autonomous, accountable and efficient functioning of the Board.

Improvement on cost recoveries and reducing
implicit subsidies in respect of urban services in the medium term,
particularly, those not directed to poor.

Putting effective management and restructuring
plan to reduce the composition of high cost borrowing and to limit
contingent liabilities. We will continue to avail of the debt-swap
scheme of the Central Government to prepay the older high cost debt
and substituting them with current low-coupon bearing small savings
and open market loans. This will marginally improve our contingent
liabilities.

Improving governance, putting in place a sound
public expenditure control and management programme by effective
information systems adherence to fiscal responsibility.

Adequate investment flow to sectors like primary
and secondary education including efforts on skill impartation for
livelihoods, basic health care, sectors encompassing income and
employment generation towards rural development, Natural resources,
bio-resources and environment conservation towards sustainable
development, expenditure on physical infrastructure in a
project-mode will be protected and pulverised.

Sir, the broad plans and policies of the State have
enunciation in the Governor's address on 19th March 2003. The
supplements tom the Budget Documents enlist the tentative programmes and
allocations for the Annual Plan2004-04. I, now propose to highlight and
intersectoral development strategy.

Implementation of Schemes: We propose to
harmonise the implementation of development programmes in a time bound
and effective manner. The schemes of High Security Jail, Assembly
construction, Convention Hall, High Court building for which Rs.18
crores has been obtained during the current year will be given due
priority.

Good Governance by Enforcement of Law and
Maintenance of Order :Sir, peace and harmony are essential
pre-requisites for growth and development. The State would like to
invest in sustainable programmes that can bring lasting peace in the
State.

In the matters of development arena besides availing
facilities of training available, a capacity building programme with the
help of Australia Aid (AUSAID) is likely to achieve a better orientation
of public servants who are the cutting building of State Police will
continue, coupled with efforts on mobilisation, strengthening and
modernisation. The Central Government has enhanced the fund earmarked
under the normal scheme for modernisation of the State Police Force.
Programmes towards technological and human capacity building would be
encouraged. We will continue to recognise outstanding devotion in public
service, while continuing our best efforts to protect the lives and
property of people in the State. Administration of Justice will receive
our highest consideration of support. We will continue to support
durable and sustainable rehabilitation of misguided youth to achieve
bringing them into the mainstream.

Natural Resource Management :

Every effort will be made for integrated and
sustainable development of our Natural Resources :

We will endeavour to complete documentation and
inventorisation of our most valued resource i.e. land including
minerals and forest. Priority will be given for formulation of Land
Use Plans by revitalising the State Land Use Board.

Concerted efforts will be made for improved
Planning utilisation of our water resources.

We will reorient our programmes and policies
towards a pro-poor directions which will receive our highest
consideration and priority. Effort will be made to make appropriate
investments in each sectors to ensure good governance and efficient
social security net.

Agriculture and Horticulture play a
predominant role in the State's economy. The uniqueness of natural
and organic farming from a low productivity brand
to high income and return generating organic farm products will be
given impetus by organising and facilitating certification,
patenting and registration. A farmer - counseling centre is proposed
to be initiated. The proposed outlay for the sector during the Tenth
Plan is Rs.7974lakh. During the last decade, 1990-2001, the food
grain trend had shown marginal improvement as follow :- ( i )
Area = -0.80 %i (ii) Production = +4.08% and ( iii ) Productivity =
+3.99 %. During the Tenth Plan the target of food grain production
is 244.79 thousand MT. In Horticulture sector, vegetable crops like
Cole Crop, Carrot, Tomato and Radish have exhibited all round
improvement in respect of area, production and productivity. Among
fruit-crops, Citrus, Pineapple, Banana, temperate fruits, have been
given special thrust as these crops have been found to be
economically viable. Areca nut and tea have brighter prospects.
However, the international and national price regime will determine
growth yards have been established at Mawiong in East Khasi Hills
and Garobadha in West Garo Hills with cold storage components of
1000 MT each. An array of 27 Centrally Sponsored Schemes are being
implemented with an investment drip irrigation, sprinkler-irrigation
and green house cultivation. The plan outlay during 2003-2004 is
tentatively proposed at Rs.1600.00 Lakh.

The Government through Soil and Water
Conservation Department could improve and develop agricultural
lands with assured irrigation from 1500 hectares during 1972-73 to
4765.08 hectares during the current year and a corresponding
increase in afforested degraded lands from 1053.96 hectares to
30363.11 hectares, over the same period. Similarly, the area under
erosion-control and cash crop plantation rose from 102.3 hectares
and 363 hectares to 10320.60 hectares and 10805.77 hectares,
respectively. The department will have to be galvanised towards
implementation of watershed based Integrated Wasteland Development
Programme (IWDP), Watershed project in shifting cultivation areas,
and other central sector and centrally sponsored programmes in close
collaboration with Forest, Agriculture and C&RD department to
enhance the absorptive capacity, capabilities and off take of funds
from the centre to the State. It is proposed to involve
Co=operatives, traditional institutions and Private entrepreneurs to
provide space for employment generation through commercial crop
plantation schemes. Subsidy based schemes will have to be
rationalised for gradual reduction and better targeting.

In the Forestry & Wildlife the Working
Plans for the operation of the State Forests havebeenapproved
by theCentral Government in accordance with the
directive of the Supreme Court. The operation of these Plans is also
subjects to the directions of the Apex Court. The Autonomous
District Councils are being assisted in the preparation of Working
Plans for forest under their control. Likewise, steps have been
taken to support the preparation of Working Plans of private
plantations. Government propose to set up a Bio-diversity Research
Centre and Park are to be funded by the Central Government. Efforts
will continue to protect and preserve the floral and fauna of the
State and to restore and enrich the wealth of the degraded forests
of the State.

The proposed Bio-Resources Centre presently
under the Planning Department will be made functional.

Animal Husbandry And Dairy : Increased
Plan investment to a level of Rs.700.00 lakh during the current year
is indicative of the importance attached to this sector. Egg
production increased from 81.4 million numbers per annum to 90.2
millions, meat-production from 28,804 tonnes to 33,767 tonnes per
annum and milk production from 59,100 tonnes to 66,000tonnes per
annum during the ninth plan period. Suitable infrastructural-linkages
and technical assistance will be provided to entrepreneurs to help
take up commercially viable dairy, poultry, and livestock farming.
The Plan outlay for 2003-2004 has been proposed at Rs.850.00 lakh
under Animal Husbandry and Rs.140.00 lakh under Dairy Development.

Fisheries. Every effort to promote
pisciculture in the private sector and to make better utilisation of
available natural water bodies will be made. A sectoral outlay of
Rs.125.00 lakh has been proposed during 2003-2004, with a
target to produce 5.5 MT of fish and 2.0 million fish-seed.

Sericulture & Weaving sector will
focus on increased production of silk-cocoons and handlooms fabrics.
Besides implementation of the North Eastern Council (NEC) funded
project for the Integrated Development of Muga, the department will
continue to implement the Catalytically Development Programme of the
Central Silk Board and the UNDP- assisted sub-programme for
development of Eric and Muga. Besides, the Deen Dayal Hathkargha
Protshahan plantation coverage of 890 hectares under Mulberry. Eric
and Muga is proposed to be taken up during 2003-2004. The production
of Eric and Mulberry silk cocoon is expected to increase from 3.63
lakh kgs during 2002-2003. The proposed annual plan outlay under
this sector is Rs.300.00 lakh during 2003-04.

Co-operatives are instrument for
transformation of socio-economic development at the grass root
level. To strengthen the Cooperation movement in the State,
Government would take necessary steps to revitalise the Primary
Agricultural Cooperatives. Necessary amendments to the Cooperative
Societies Act and Rules is being brought out. The sectoral Plan
outlay of Rs.375.00 lakh has been proposed during the year
2003-2004. Revitalisation of Cooperatives through effective
cooperative education and training will be pursued. Restructuring,
and strengthening of cooperatives through Integrated Cooperative
Development Scheme (ICDS) will continue to facilitate democratic
functioning of the cooperative societies in a professional manner.

Rural Development would continue its
focused attention to poverty alleviation, employment generation, and
creation of rural infrastructure with backward and forward
linkages. Towards this decision-making to facilitate implementation
would be improved to achieve a better utilisation of central fund.

Efforts will be made towards :-

Creation of durable community assets through
utilisation of a sum of Rs.461.85 Lakh under the sponsored SGRY.

Efforts to bridge critical gaps in rural
infrastructure in selected sectors will continue under the SGRY-I
Scheme.

Under Indira Awaas Yojana, 1214 new shelters have
been completed and 642 shelters upgraded.

26,531 old and destitute citizens, and 58 other
beneficiaries are expected to be benefited under the National Social
Assistance Programme.

Besides, in the matters of Rural Employment
during 2002-2003, 14.89 lakhs man-days of rural employment had been
generated till February 2003 under the different Centrally Sponsored
Employment Generation Programmes. It is expected that a total of 20.00
lakh man-days of employment will be generated during 2003-2004.

The success of a delivery system is often measured by
the efficacy of development administration at the grass root level. The
Community and Rural Development Blocks, being our grass root level
institution have been expanded and strengthened. However, their
functioning will be closely monitored. An amount of Rs.600.00 lakh has
been allocated for Community Development programmes next year. During
the current year 2002-03, allocation under the programme Special Rural
Works Programme [SRWP] popularly known as MLA scheme, has been increased
from Rs.25.00 lakh to Rs.30.00 lakh per rural Assembly Constituency and
from Rs.12.50 lakh to Rs.15.00 lakh per semi-rural Assembly
Constituency. This programme has generated sustainable community assets
and will continue as a major programme under the Rural Development
Sector during the next year.

In the Housing sector the Rural Housing Scheme and
Prime Minister Gramodaya Yojana as per guidelines will be implemented.

Border
Areas Development Schemes are being implemented to improve the
economic condition of the border inhabitants. The Government will
continue to implement schemes relating to construction of link roads,
community schemes to generate employment, construction of schools
buildings, community halls, footpath, footbridges, market stalls etc.
Scholarship scheme extended to the student residing in border areas will
continue. Rs.770.00 lakh has been under this sector during 2003-2004.

Assistance
to Autonomous District Councils : Autonomous District Councils are
historical and constitutional having their autonomous character and
responsibilities. With the creation of a full-fledged State, there has
to be a symbolic relationship based on mutual trust, partnership and
co-operation. Constitutionally a State is a bigger entity and assistance
to district councils will have to be ensured. However, such assistance
cannot be open ended. The established norms and procedures and
accountability on such assistance must be there. The programmes for
providing grants-in-aid to the Council for construction of village
roads, footpath, bridges, playgrounds, Council own office building and
improvement of rural markets will continue. However, members are aware
that such works are undertaken by the C&RD/PWD/Border Area
Development Department/MLA schemes and others. A mechanism needs to be
evolved for formulation and clearances of the schemes by enunciation a
district level committee, involving the MLAs, sectoral departments and
including the District council to oversee that no duplication takes
place and the investment are fruitfully utilised in a synergistic manner
in the State. An amount of Rs.550.00 Lakh is projected for this sector
during 2003-2004. However, this will depend on release from Government
of India and policy decisions in this regard.

Irrigation
And Flood Control : The total identification irrigation potential is
1.18 lakh hectares, out of which only 24,460 hectares, which is about 11
% only, has been achieved. In order to fully tap irrigation potential, a
separate Directorate of Irrigation was set up during 2001-02. The lone
medium irrigation project in the State, Rongai valley irrigation at a
cost of Rs.1630 lakhs is under review. Investigation in other areas
having irrigation potential will be taken up.

Power,
electrification and non-conventional energy : The State has a total
installed capacity of 185.20MW. As mention earlier, the Power sector
reforms have already been put on a track. The State Government has also
signed a Tripartite agreement for One Time Settlement of SEB dues. The
objective of the Power sector reforms is to improve the sub-transmission
and distribution system for better liability of power and reduction of
transmission and distribution losses under the Accelerated Power
Development Programme ( APDRP ). During 2003-2004, an amount of Rs.9
crores is proposed to be spent for implementation of the project. The
total number of villages electrified is 2612, while the numbers of
consumers are about 1,50,000. During 2002-2003, 583 villages were
electrified under various schemes. In addition, 30985 under BLP (below
poverty line) families have been provided single point connection under
Kuntir Jyoti Programme till date, and 10000connections are expected to
be released during this financial year. During 2003-2004, additional 500
villages are proposed to be electrified with an outlay of Rs.60.21
crores.

In order to meet the likely shortfall of power in the
coming years, the Government has initiated a number of measures. A
long-term measure is the implementation of the Myntdu-Leshka Hydel
Project at a cost of Rs.363 crores, which will generate 84 MW by the end
of the 10th Plan period. For the aforesaid purpose a loan of Rs.160
crores is likely to be sanctioned by REC. Grants from NEC to the tune of
Rs.145.00 crores has been also been agreed. The outlay for 2003-2004 for
this project is Rs.61.50 crores. Construction of transmission lines to
tap power from the Eastern Grid are under consideration. Renovation and
modernisation of power station at Uminm Umtru, Stage-II, is proposed
during 2003-2004 with an outlay of Rs.18 crores, and for the Stage-III
at Rs.5 crores.

Industries
and allied : The mechanism and incentives provided under industrial
Policy, 1997, excise concessions extended by the Government of India and
the establishment of the Export Promotion Industrial Park at Brynihat
have created a favourable atmosphere for the development of Industries
in the State. Regular Entrepreneur Development Programme (EDP) and
Awareness Programmes are being conducted by the DIGs, MIDC, IIE, NEITCO
and SISI to boost up entrepreneurship in the State. Industrial Units
have been registered as on 31.3.2003 with employment generation of
23,054 persons. The Khadi &Village Industries Board continues to
implement Rural Employment Generation Programmes, Block Employment
Schemes and Consortium lending. The Plan allocation under this sector is
proposed tentatively at Rs.1675.00 lakh during 2003-2004.

Mining
& Geology department will continue to harmonise scientific
mining the enormous potential of the State with concerns of geology and
ecology. During 2002-2003, the Department has taken up as many as 11
geological investigation programmes on mineral exploration including
investigations on ground water and geotechnical studies. The proposed
Plan outlay during 2003-2--4 for this sector is Rs.158.00 lakh.

Public
works : Roads, Bridges and Buildings : Strengthening of road
infrastructure occupies a central place in the overall development
strategy of the State. However, PWD will have to prepare a master plan
for roads in the State integrating and coalescing the District plans,
and block plans. Schemes under the PMGSY for rural connectivity already
stipulate such mechanism for formulation. Thus, the State master plan
should clearly indicate the National highways, State highways, other
State roads of A, B, &C category. Unless a sustainable plan is
adopted by the State, this sector will remain afflicted by adhoc
decisions, expediencies and very thin spread of resources leading to
delay, leakages and cost escalations. The report of the committee on
Projects as constituted will be given due accommodation in policy
formulations. Further, no loans would be mobilised, unless there is cost
recovery indicated in the project. This sector is allocated Rs.8250.00
lakh tentatively during 2003-2004.

Construction of additional wing of Main Secretariat (cv.
Yojana building ) is likely to be completed during this year and Multi
Complex Administrative building at the Old Transport Building Campus,
Lower Lachumiere, is in progress. The Circuit House at Mawkyrwat and the
new VIP Block at Tura Circuit House will be made functional.

Transport

Road Transport Service to interior places will be
encouraged by granting Road Permits to Private Operators. Goods and
passengers tax will be strictly enforced in close coordination with
Taxation Department. The matter relating to operationalising of 50 seat
Air craft at Umroi will be effected soon. The proposed Plan allocation
under this sector during 2003-04 is Rs.175.00 lakhs.

The
State has enormous and diverse potential for Tourism. It is proposed to
enunciate tourism policy, and preparation of a Master plan in the State.
People's participation in giving boost to local economy will be
encouraged. Linkages with heritage, art and cultural activity will be
positioned. Idle infrastructure will be privatized or leased out. Boost
to the sector will be in the mode of facilitation and promotion to
private sector. Development of tourist spots in and around Cherrapunjee
and Umiam lake area with the support of the Ministry of Tourism is under
active consideration of the Department. The Department has proposed to
develop Tura-Balpakram Tourist Circuit, setting up of Information
Centre-cum-Paryavaran Bhavan at ward's lake during 2003-2004 with the
support from the Ministry of Tourism. An outlay of Rs.275.00 lakh
tentatively is proposed for this sector during 2003-2004.

Efforts
will continue to preserve, protect and conserve the rich Arts &
Culture potential of the State. Creation of infrastructure,
research and documentation of indigenous forms of art will receive
priority attention. The intensive Art and Culture Development Programme
implemented through MLAs will continue to provide assistance to
registered cultural organisations. Expectations and development of
Museum buildings and improvement relationship has been established for
exchange, support and co-operation with the Victoria Memorial Museum,
Kolkata and other National institutions. Up-gradation of Public
Libraries in the State is also being taken up under the Eleventh Finance
Commission Award. An amount of rS.575.00 Lakh is proposed for this
sector during 2003-2004.

About
10.66 % of the Plan outlay is earmarked for Education sector. The
State will enhance efforts to improve educational standards in the
State. The Sarva Shiksha Abhiyan (SSA) State Mission Authority under the
Chairmanship of the Chief Minister has been constituted for providing
quality education to all children of the age group 6-14 years, children
with disabilities and out of school children. 135 existing Primary
Schools are being upgraded to Upper Primary level during 2003-2004 under
SSA. To achieve the Universalisation of Elementary (UEE), a perspective
plan has been formulated. The activities to be carried out as per Annual
Work Plan on priority are : Setting up schools in viable areas, Setting
up Alternative Schooling Facilities in unviable villages, Strengthening
of existing facilities, Imparting quality training to untrained
teachers, Ensuring appointments of pre-service trained teachers,
Improving infrastructures, Providing teaching and learning equipments,
and Providing incentive schemes. Mid Day meal scheme by providing cooked
meals to school children under the scheme of Nutritional Support to
Primary Education will continue to be implemented.

A 3- year Diploma in Computer Science and Engineering
and 2 year post Diploma in Information Technology are being introduced
in Shillong Polytecnic. Jowai and Tura Polytecnic are being set up
during this year.

Science
and Technology : Introduction of Appropriate Technologies and
Science popularisation, through Science Exhibit Workshop and
Environmental Fairs will be continued. A new project known as Shillong
Science Centre is proposed to be set up during the next financial year.
During 2003-2004 an outlay of Rs.100.00 lakh is proposed under this
sector.

Information
technology will be centred on e-governance and catalysing growth and
development of Information Technology enterprise, besides opening
avenues for employment of unemployed youth. A taken provision of Rs.1.00
crore has been made for the first time during 2003-04.

Sports and
Youth Affairs : A vision to tap the creative potentials of the youth
in chanellising their energies towards building o harmonious, peaceful,
progressive and prosperous State would be initiated. We are committed to
guide our youth towards achieving their potential. There are 85 numbers
of ongoing schemes taken up by the State Sports Council in different
Districts of the State. The scheme included construction of outdoors and
indoors stadium, indoor hall, basket court, playfield. The Department
has also taken up other activities such as training of personnel in
sports & games, conducting of youth camp, financial support to NGO's
engaged in youth welfare activities and awarding cash awards and
scholarship to the Sports persons who excels themselves in Sports for
capacity building of our youth.

The Supply
of Food and essential Commodities and their prices will be monitored.
The Targeted Public Distribution System which cover 1,54,900 BPL
families, 28,100 AAY families and 2,66,078 APL families in the
State will have an effective vigilance and monitoring system. Annapurna,
another Central Sector scheme under which persons above 65 years not
covered by old-age pension scheme are provided with 10 KG of rice, free
of cost per month is being implemented in the State since January 2002
and scheme will be continued.

Health &
Family Welfare will continue to get utmost priority. Inthe
past few years, Infrastructure has been created and improved. Diagnostic
facilities are being positioned by suitably equipping hospitals in the
State in a phased manner. Though a lot has been in recent past, I
propose to give priority to the followings tasks :

A capacity building programme towards better
public service; enforcement of compulsory rural service

Improving health infrastructure and facilities
and strengthening the district hospitals and upgrading laboratory
facilities

Up gradation of CHC at district headquarters to
the district hospitals; up gradation of the Civil hospital Shillong
to the State General Hospital and strengthening Tura civil Hospital
for rendering regional referral services for the Garo Hills region;

Other efforts would concentrate on;

Making health institutions functional by
arranging technical manpower, materials and synergysing construction
with service connections of water and electricity

Providing approved and cost effective medicine to
the patients, arrangements for hospital pack and mixtures for wider
coverage within the limited resource, procuring and prescribing
medicine under the generic names for economy and coverage.

Providing Accident trauma facility; and
operationalising the National Programme for Rehabilitation of
Persons with Disabilities (NPRPD).

Invigorating and mobililing peoples participation
in monitoring, vigilance and management of health care facilities
and services;

Tapping the NGOs and the civil society and
transferring certain tasks and responsibilities for outsourcing and
outreaching services;

Strengthening food and drug testing and
enforcement;

Computerisation and use of IT will be encouraged,
including use of telemedicine.

Focus on National Health programmes with emphasis
and intensification of Malaria, Blindness, AIDS control and T.B.
Programmes.

To set up indigenous system of medicine Ayurvedic/Homeopathy
dispensaries/Hospitals in the State, preferably in the rural areas

To take effective steps for MIMHANS, drug
de-addiction center jointly with the NGOs.

A sectoral plan allocation of Rs.38.50 crores has
been proposed for the year 2003-04.

Water
supply and Sanitation : The programme for providing safe drinking
water to all human habitations will continue to be taken up under the
PMGY. Under the Accelerated Rural Water Supply Programme, the set target
of 2004 within which all segments of the population should be provided
with safe drinking water will be endeavoured to be achieved. During
2003-2004 the target is to cover 400 Not-Cover (NC) and Partially
Covered (PC) habitations. Water supply augmentation schemes are under
implementation at Shillong, Baghmara, Williamnagar and Cherrapunjee.
During 2002-2003, the Tura phase 111 Water Supply Scheme and renovation
of Jowai Water Supply Scheme have been technically cleared by the
Ministry of Urban Development. The Greater Shillong Water Supply Scheme
(GSWSS) is progressing satisfactorily and the dam is likely to be
completed shortly. The availability of water will be 11.30 million
gallons per day after the completion of the scheme against the present
availability of 7.5 million gallons per day. Ribhoi District has been
selected to implement a pilot project with active participation of the
community, and 10 % contribution by the villagers. The pilot scheme will
be expanded to other Districts. An amount of Rs.3859.00 lakh is proposed
for this sector during 2003-2004, against the revised outlay of
Rs.3375.00 lakh during 2002-2003.

Urban Development : Efforts to provide adequate infrastructure
and basic civic amenities in all urban areas of the State will continue.
Shillong city waste disposal system has been completed and is in
operation. Efforts are on to have scientific solid waste disposal system
for Tura and Jowai during 2003-2004. Second place of land acquisition
for New Shillong Township has since been initiated and development of
infrastructure is likely to be taken up shortly. Under Environmental
Improvement of Urban Slum (EIUS) 2741 persons have been covered till
January 2003 out of the target of 2950. Under (National Slum Development
Programme (NSDP), 72,800 numbers of man-days is expected to be generated
by the end of this financial year. The Plan outlay under this sector for
the year 2003-2004 has been fixed at Rs.2385.00 lakh, tentatively. The
special urban works programme implemented through the MLAs will
continue.

Labour & Employment : With the growth of services and
industry the safety, welfare, Health and legal aspect of the workers/labourers,
especially those working in factories and boilers will be given due
support. The proposed outlay under this sector during 2003-2004 is
Rs.190.00 lakh tentatively. Expansion of Industrial Training Institute (
ITI ) at Baghmara, opening new area of skill within outside the State
will continue to be implemented.

Social Welfare and Nutrition : Schemes for welfare of Women,
physically handicapped, juvenile delinquents, aged and infirm would
continue to be implemented. 45 physically-handicapped persons have been
provided with prosthetic aids, 1072 physically handicapped students have
been supported with scholarship and 56 numbers given vocational training
in different trades during 2002-2003. Implementations of "The
Persons With Disabilities (Equal Opportunities Protection of Right and
Full Participations) Act 1995 will be given due support and directions.
Barrier free access and other opportunity and rights of disabled will be
acknowledge. It is proposed to give uniform grants to 110 physically
handicapped students, book grant to 179, conveyance allowance to 90 and
unemployment allowance to 22. Besides, it is proposed to continue to
implement the following schemes during 2003-2004 : (i) The National
Programme for Rehabilitation of Persons with Disabilities, (ii) Women
Technology Park, (iii) National Plan of Action for Older Persons (NPAOP),
(iv) National Plan of Action on Women's Policy and Empowerment,
Supplementary Nutrition Programme for ICDS Scheme & Urban Areas (PMGY).

Various administrative department have schematic components of
Information, Education and Communication (IEC), information, Education
and Communication (IEC), information and publicity, Awareness buildings
etc. Besides the State also has Information and Public Relations
department. I propose to charter an effective co-ordination and
information management between the departments. Information and
Publicity will be reoriented towards awareness building of various
development programmes of the Government through proper dissemination of
information. The efficacy of plans and programmes will also be verified
and tested by Programme Implementation department. Efforts will be made
to vitalise Civil Defence and Home Guards.

Public Sector Undertakings (PSU) and Reforms :
Sir, the performances of the Public Sector Undertakings (PSUs) and
enterprises are by now well known. In this house on several occasions
voices of serious concerns have been raised regarding their performances
or non-performances. The present state of affairs cannot be allowed to
continue. There are 10 working government companies and 3 working
statutory corporations. I would like to share some of the highlights :

They, together employ about 6000persons

As on March 2001 their paid up capital is
Rs.10,025 lakhs, accumulated profit/loss is Rs.(-) 32,859 lakhs,
Capital employed is Rs.47,205 lakhs, Total return on capital employ
is Rs.2327.91 lakhs, and percentage return on capital employed is
4.93. However, this scenario is on aggregate and macro level.

Most of the PSUs are in arrears of their
finalised accounts, The MTDC is in arrears since 1987-88.

Of the Ten Companies, eight are loss incurring
government companies, of this four company namely Meghalaya Watches
Ltd, Meghalaya Bamboo Chips Ltd, Meghalaya Electronic
Development Corporation Ltd and Meghalaya Government Construction
Corporation (MGCC) has losses far in excess of their paid up
capital. These will be considered for winding up.

Of the three working statutory corporations two
has earned a marginal profit and only one has declared dividend. But
their performances needs further improvement.

In organisations like MTC, MMDC, MSHB, also calls
for a radical and drastic effort towards winding up or
restructuring.

In view of the above, the following measures
are proposed :

Total freeze on appointments in the PSUs, freeze and
present position being ceiling on any additional financial burden on
establishment, existing vacancies out of retirement/death to be
abolished, the financial perks and packages given after the time of
employment to be withdrawn, the management to be restructed to reduce
drastically the expenditure on establishments, Till a final decision for
disinvestments/, restructuring/ merger/closure/ case by case is taken,
benchmarks on fiscal norms would be set and achieved. Sir, I may inform
that indications are, that if there is a decision for closure, perhaps
one time assistance as additional Central assistance may be available to
the State for VRS/ golden handshake so that the employees may not
suffer.

The Programme Implementation Department will
consider to constitute a Disinvestments committee or engage professional
and accredited consultants. I also propose that, even though provision
for assistance has been in the budget estimates for 2003-2004 to
specific PSUs, no assistance would be given to any PSU and Apex
Co-operatives without a consideration on their performances and approval
of the cabinet. I also propose that the Savings due to non-release under
the allocation would form a corpus for Disinvestments, VRS, One Time
settlement and liabilities

Mobilising Institutional finance :

Sir, poor extension of credit is a major
bottleneck for development and act as one of the biggest constrains in
rural livelihoods matters, concerning poverty alleviation, employment
oriented, production oriented, conservation oriented and income
generating programmes. The credit deposit ratio in the State remains
below 20 percent for more than a decade or so. Traditional land
tenure is often blamed as constraining security for their credit.
However, the traditional land tenure system is justifiable in courts.
The State government has already enacted legislation namely the
Meghalaya Miscellaneous Credit Operations Act way back in 1976 and
necessary exemptions to financial institutions under the Meghalaya Land
Transfer Act 1972 has been notified. The State government will consider
the feasibility of notifying other district headquarters as centres for
equitable mortgage for collaterals. Location based alternative credit
arrangement and micro-credit model is a dire necessity. More than 50 %
of the credit deployed by the banking agencies largely concentrated in
Shillong. Further, advances have been as high as 85% to 90% in trade and
transport sectors, which are also largely concentrated in Shillong. The
changing trend has been that the advances are shifting from the
'priority sector' to 'personal loans and professional services'
significantly.

Recovery of loans is essential for better recycling
of funds. The recovery position of the banks in Meghalaya is one of the
lowest in the country and thus the Rural credit has been the first
victim of this poor recovery climate. All efforts would be made to stem
the slide. Efforts will be made to make non-banking treasuries and sub
treasuries as banking treasuries/ Sub treasuries.

TAX reform & VAT : Sir, in the coming
financial year, under the initiative of the central government, States,
has committed themselves to implement Value Added TAX (VAT). From the
Union Finance Ministers Budget speech we all know that the State level
value added tax will be historic and paradigm shift in domestic trade
tax collection system. Such system, is operational in 120 countries and
may assist in global transition of the trade systems. For this a
legislation has already been introduced in the house. This
legislation is based on minimum set of common features, as agreed by the
Empowered Committee of the State Finance and Taxation Ministers. There
are apprehensions that the tax collection may fall. More so, as we have
not geared ourselves to computerised our tax information system. To that
direction we have agreed to implement VAT and also invest in such
necessity of information base and computerisation in order that we do
not suffer and lag behind. The Central government has agreed to
compensate 100% of the revenue loss in the first year, 75% in the
second year and 50% of the losses in the third year. The loss will be
computed on the basis of an agreed formula. It is expected that apart
from avoiding cascading effect of taxes, it may lead to enhanced revenue
as the coverage expands to value addition at all stages of production
and distribution chain. Further, there will also be amendment to the
Additional Excise Duty (AED) Act by the centre which will allow the
States to levy sales tax on textiles, sugar and tobacco at a rate not
exceeding 4%, these can also be integrated in the VAT system. The States
will continue to get additional 1.5% of all sharable taxes and duties.
There is also a likelihood that States will be empowered to collect and
retain tax on services for which a constitutional amendment is
contemplated in the union Finance Minister's Budget Speech which will
enable both the centre and States to collect such service taxes.

Annual Plans

The plan size of 2002-2003 was fixed at
Rs.545.00 crores and was to be funded besides other components by
negotiated Loan of Rs.122.73 crores from Financial Institutions and
Rs.70.00 crores from Market borrowings. So far only about Rs.33.00
crores Negotiated loans have achieved. To that extent the approved
plan size of 2002-03 will stand reduced.

The proposed plan outlay of Rs.605.00 crores
for 2003-04 has been formulated on purely tentative basis
since the Resource discussion as well as the Annual Plan discussion
with Planning Commission have not been incorporated in our
Budget estimated 2003-04.

Economy measures :

Sir, in the past economy measures viz. Ban on
Creation new posts except on Special circumstances; purchase of new
vehicles except for replacement; acquisition of assets, restriction
on avoidable tours etc. have been very successful expenditures and
have since formed part of the fiscal policy of the State Govt.
During 2002-2003, Finance Department also imposed a 10% economy cut
on all Non-plan expenditure. Such measures will continue during
2003-04. Given the awesome task of fiscal corrections and reforms,
additional Economy Measures will also be brought in force.

Towards such corrections various committee to
examine and suggest tide the problem has been formed as below-

Committee to go into the entire gamut of the tax
and non-tax issues.

Committee on Project Management to identify long
pending projects, to oversee shelf of projects, inventory control
etc.

Sir, in my submission earlier, my intention has been focused mainly
to attain systematic corrections and expenditure compression. I am sure,
this is possibly if we think and act objectively.

Now, I am enlisting measures by which the revenue receipts of the
government are proposed to be augmented :

Annual licence fee of Bonded Warehouse to be increased from
Rs.1.05 lakh to Rs.1.20 lakh.

Annual licence fee of retail-off IMFL shop to be increased from
Rs.38,000 to Rs,42,000.00.

Annual licence fee of Bottling plants of IMFL to be enhanced from
Rs.1.05 lakh to Rs.1.75 lakh.

Annual licence fee for Bar, Hotel, Clubs to be enhanced from
Rs.26,00.00 to Rs.30,000.00.

Annual licence for canteen licences to be enhanced from
Rs.10,000.00 to Rs.15,000.00.

Annual licence fee for outstill licences to be enhanced from
Rs.1700.00 to Rs.2500.00.

Annual licence fee for centralised outstill to be enhanced from
Rs.800.00 to Rs.1200.00.

Annual licence fee for Denatured spirit (wholesale) to be enhanced
from Rs.200.00 to Rs.500.00.

Annual licence fee for Denatured spirit (retail) to be increased
to Rs.1000.00 from the existing rate of Rs.500.00.

Annual licence fee for rectified spirit wholesale to be enhanced
to Rs.800.00 from the existing of Rs.200.00.

Annual licence fee for rectified spirit (retail) to be increased
from Rs.100.00 to Rs.400.00.

Annual licence fee of medicated wine to be enhanced from Rs.100.00
to Rs.500.00.

Introduction of 180ml bottle of IMFL in the State of Meghalaya.

Popular 'B' segment of IMFL to be merged with general brand at the
existing rate of excise duty.

Import pass fee for IMFL from existing Rs.36.00
to Rs.50.00 per case and for beer from Rs.24.00 to Rs.30.00 per
case.

Export pass fee for IMFL and beer to be enhanced
to Rs.100.00 per case.

Label registration fee of

(a) Whisky, Brandy and Rum from existing
Rs.20,000.00 to Rs.30,000.00 and licence fee of the

item
from existing rate of Rs.10,000.00 to Rs.15,000.00 per brand

(b) Gin,Vodka,
Wine and Beer from existing Rs.10,000.00 Rs..15,000.00 and renewal fee
for these

items
from existing rate of Rs.5,000.00 to Rs.7,500.00 per brand

Deregistration of IMFL and beer brands bottled in the North East
Region but outside the State.

The above measures is likely to mobilise an additional Rs.2.50 crore.

Sir, I now come to matters of motor vehicles and other revenue :

Increase of driving licence fee for all categories by 15%

Increase in registration fee of all categories of motor vehicles
by 15%

Passengers and goods taxes to be enhanced by 20%

I also propose that the rent of residential accommodation provided
by the Government be increased by 15%.

Processing fee of 0.5% of the estimated cost of Project for the
technical vetting and counter signature by the Government technical
authority for projects and schemes implemented by other than the
Government Departments.

I propose to enhance agency charges for works to be undertaken by
PWD by 2%.

I propose to enhance by 10% the existing hiring charges for all
machinery and equipment other than the Government

I propose collection of fee for the use of conferencing facility
of Government by other than the Government Department and purpose.

I propose to enhance Water charges/ tax by 20%.

Increase in the hire charges of water tankers of PHE department
from Rs.450.00 to Rs.675.00.

I propose to introduce a nominal fee of Rs.10.00 for artificial
insemination of cattle.

I propose to introduce permitting unused/ under utilised
infrastructure of Health Institutions and other Institutions
including Public Sector Enterprises (PSEs) to be used by private/
NGO/ agencies against appropriate charges as per rules/ agreement
framed.

Sir, I propose an additional development and maintenance fee of
Rs.5.00 in Hospital and Rs.2.00 in the PHCs and CHCs per OPD patient
and Rs.10.00 in hospital and Rs.5.00 in the CHCs/ PHCs per indoor
patient. This amount will constitute a revolving fund of the health
institutions and will be managed and utilised for that particular
institution. Detailed modality will be enunciated by the Health and
Family Welfare Department. However, such additional fee will not be
charged for maternal and childcare.

Sir, I propose to enhance laboratory, Biochemistry and other
analytical works under taken by the Health Department by 10%

I propose that the royalty on coal as revised by the Government of
India will be implemented.

I propose to take up with the Government of India for collection
of excise duty for conservation and development of minerals.

Outflow of raw materials from the State will be suitably regulated
to encourage ad-value and job creation. Tax structure would be
suitably framed for the purpose.

All these measures will have effect from 1st April 2003. The likely
additional resource mobilisation to the tune of Rs.5.00 crore is
expected.

II BUDGET ACTUALS
2001-02.

The year 2001-02 opened with a surplus of Rs.45.7574 crores
(Rupees forty five crores, seventy five lakhs, seventy four thousand )
While the total receipts during the year including receipts under Public
Accounts amounting to Rs.11,515.9431 crores ( Rupees eleven thousand
five hundred fifteen crores, ninety four lakhs, thirty one thousand )
the corresponding expenditure was Rs.11,571.9405 crores (Rupees
eleven thousand five hundred seventy one crores, ninety four lakhs, five
thousand), resulting in a closing deficit balance of Rs.10.24
crores ( Rupees ten crores, twenty four lakhs).

III. REVISED ESTIMATES 2002-03.

The revised estimates for the current reflects an opening deficit
balance of Rs.10.24 crores (Rupees ten crores, twenty four lakhs )
only. While the revised estimates receipts during the year including
receipts under Public Accounts are likely to amount to Rs.14,259.8445
crores (Rupees fourteen thousand two hundred fifty nine crores, eighty
four lakhs, forty five thousand) only, the corresponding expenditure
is expected to amount to Rs.14,268,5574 crores ( Rupees fourteen
thousand two hundred sixty eight crores, fifty five lakhs, seventy four
thousand ), resulting in an anticipated deficit of Rs.18.9529
crores ( Rupees eighteen crores, ninety five lakhs, twenty nine thousand
).

III. BUDGET ESTIMATES 2003-04

The estimates envisage an opening deficit balance of Rs.18.9529
crores (Rupees eighteen crores ninety five lakhs, twenty nine thousand )
and a total receipt including receipt under Public Accounts of Rs.14,428.0432
crores ( Rupees fourteen thousand four hundred twenty eight crores, four
lakhs, thirty two thousand ) against a corresponding expenditure
including expenditure under Public Accounts of Rs.14,434.3191 crores,
(Rupees fourteen thousand four hundred thirty four crores, thirty one
lakhs, ninety one thousand), resulting in an anticipated closing
deficit of Rs.25.2288 crores ( Rupees twenty five crores, twenty two
lakhs, eighty eight thousand ).

With these words, Sir, the budget estimates for 2003-04 are presented
to this august House for consideration and approval. However, to enable
the Government to carry on with its duties and defray expenditure from
the first day of the next financial year, I propose that the House may
grant a vote-on-account.